Majestic GOLD Corp. Reports 2017 Q2 Results
MAJESTIC GOLD CORP. REPORTS 2017 Q2 RESULTS
Vancouver, British Columbia – May 23, 2017 - Majestic Gold Corp. (“Majestic” or the “Company”)
(TSX.V: MJS, FSE: A0BK1D) reports its financial and operational results for the second quarter ended
March 31, 2017. This release should be read in conjunction with the Company’s unaudited condensed
consolidated interim financial statements and associated management discussion and analysis (“MD&A”)
for the same period that are available on SEDAR ( www.sedar.com) and www.majesticgold.com. The
following financial results are expressed in US dollars unless otherwise stated.
OVERVIEW
Gold production from the Songjiagou Gold Mine for the second quarter of 2017 was 5,811 ounces, a
6% increase over the comparative 5,497 ounces produced for the second quarter of 2016. Total ounces
produced for the six month period ended March 31, 2017, was 11,653 ounces compared to 12,710
produced in the 2016 comparative six month period. The higher gold production in the prior period can
be attributed to approximately 30,000 tonnes of higher grade fine fraction material that was processed
during the first quarter of 2016;
Tonnes milled for the second quarter of 2017 was 413,214 tonnes with an average head grade of 0.54
g/t compared to 442,331 tonnes milled with an average head grade of 0.44 g/t in the 2016 comparative
quarter. Tonnes milled for the six months ended March 31, 2017, was 826,524 tonnes with an average
head grade of 0.51 g/t compared to 860,881 tonnes milled with an average head grade of 0.51 g/t for
the 2016 comparative six month period. The average head grade for the 2016 comparative period was
supported by the processing of approximately 30,000 tonnes of higher grade fine fraction material;
Gold sales reve nue for second quarter of 2017 was $9.5 million from the sale of 7,716 ounces at an
average realized gold price of $1,234 per ounce compared to gold sales revenue for the second quarter
of 2016 of $10.3 million from the sale of 9,259 ounces at an average r ealized gold price of $1,115 per
ounce. The 8% decrease in gold sales revenue for the current period is due to a 17% drop in the
number of ounces and is partially offset by an 11% increase in the average realized gold price over the
2016 comparative quart er. Total gold sales revenue for the first six months of 2017 is $13.5 million
compared to the $14.7 million for the 2016 comparative period;
Total cash costs decreased by 24% to $760 per ounce for the second quarter of 2017 compared to cash
costs of $1,0 04 per ounce for the second quarter of 2016. Total cash costs for the six months ended
March 31, 2017, were $787, a 22% decrease compared to $1,012 for the 2016 comparative six month
period. The lower total cash costs also lead to a 21% decrease of all -in sustaining costs (“AISC”) to
$848 per ounce for the second quarter of 2017. The Company was able achieve lower total cash costs
and AISC for the first six months of fiscal 2017 through negotiating an amendment to its mining
agreement lower mining and proce ssing fees. See pages 14 -15 of the MD&A for calculation of these
Non-IFRS measures;
General and administrative (“G&A”) expenses were $749,978 for second quarter of 2017 compared to
$630,546 for the 2016 comparative quarter;
On January 31, 2017, the Company issued 72, 500,000 units at CAD$0.135 per unit for total
subscription proceeds of CAD$9,787,500 (USD $7,521,694). Each unit consisted of one common share
306 - 1688 152nd Street
Surrey, British Columbia
Canada, V4A 4N2
Telephone: 604-560-9060
Facsimile: 604-560-9062
Email: [email protected]
and one common share purchase warrant entitling the holder to purchase an additional common share
at CAD$0.155 fo r a period of two years from date of issuance. The Company incurred share issue
costs of $35,148 (USD$27,011). Proceeds from the private placement will be used to partially fund
construction of housing for inhabitants of two villages that are being reloca ted due to their close
proximity to the Songjiagou open pit operation and for general working capital purposes; and
The Company continues its underground development on the Songjiagou North property and has
progressed in developing 698 meters of the 2,075 meter ramp. The Company anticipates the
development to be completed at Songjiagou North in late fiscal 2018 or early fiscal 2019.
FINANCIAL INFORMATION
Three months ended March 31, Six months ended March 31,
2017 2016 2017 2016
Operating data
Gold produced (ozs) 5,811 5,497 11,653 12,710
Gold realized net of smelting fees (ozs) 5,363 5,207 10,771 12,183
Gold sold (ozs) 7,716 9,259 10,835 12,796
Average realized gold price ($/oz sold) $ 1,234 $ 1,115 $ 1,247 $ 1,148
Total cash costs ($/oz sold) (1) 760 1,004 787 1,012
All-in sustaining costs ($/oz sold) (1) 848 1,075 907 1,114
Financial data
Total revenues $ 9,602,677 $ 10,434,943 $ 14,879,403 $ 14,879,403
Gross profit (2) 2,705,984 475,669 3,639,173 379,491
Adjusted EBITDA (1) 3,071,795 516,194 3,883,498 681,261
Net profit (loss) 1,385,856 (1,514,070) 1,705,556 (2,144,926)
Net profit (loss) attributable to
shareholders 887,235 (1,454,033) 1,033,726 (2,003,032)
Basic and diluted gain (loss) per share 0.00 (0.00) 0.00 (0.00)
March 31, September 30,
2017 2016
Cash and cash equivalents $7,556,399 $9,037,258
Total assets 99,071,389 93,305,139
Total debt 29,545,689 33,038,286
(1) See “Additional Non-IFRS Financial Measures” in the Company’s MD&A.
(2) “Gross profit ” represents total revenues, net of cost of goods sold.
About Majestic Gold
Currently focused solely in China, Majestic Gold Corp. is a British Columbia based company engaged in
commercial gold production at the Songjiagou Gold Mine in eastern Shandong Province, China.
Additional information on the Company and its projects is avai lable at www.sedar.com and on the
Company’s website at www.majesticgold.com.
For further information, please contact:
Stephen Kenwood, P.Geo., President and CEO
Telephone: (604) 560-9060
Email: [email protected]
Website: www.majesticgold.com
Cautionary Notes
Certain statements contained herein may constitute forward‐looking statements and are made pursuant to the
"safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995 and Canadian
securities laws. Forward‐looking statements are statements which relate to future events. Such statements
include estimates, forecasts and statements as to management's expectations with respect to, among other
things, business and financial prospects, financial multiples and accretion estimates, future trends, plans,
strategies, objectives and expectations, inc luding with respect to production, exploration drilling, reserves and
resources, exploitation activities and events or future operations. Information inferred from the interpretation of
drilling results and information concerning mineral resource estimates may also be deemed to be forward -
looking statements, as it constitutes a prediction of what might be found to be present when, and if, a project is
actually developed.
In some cases, you can identify forward‐looking statements by terminology such as "may ", "should", "expects",
"plans, "anticipates", believes", "estimates", "predicts", "potential", or "continue" or the negative of these terms or
other comparable terminology. These statements are only predictions and involve known and unknown risks,
uncertainties and other factors that may cause our or our industry's actual results, level of activity, performance
or achievements to be materially different from any future results, levels of activity, performance, or
achievements expressed or implied by these forward‐looking statements.
While these forward‐looking statements, and any assumptions upon which they are based, are made in good
faith and reflect our current judgment regarding the direction of our business, actual results will almost always
vary, som etimes materially, from any estimates, predictions, projections, assumptions or other future
performance suggestions herein. Except as required by applicable law, Majestic Gold does not intend to update
any forward‐looking statements to conform these statements to actual results.